Labor leadership crisis

Mr Rudd has announced he lacks the numbers to accept a nomination as leader in a contest that has failed to eventuate at Parliament House today.

The Prime Minister called a labor caucus vote for the leader and deputy leader positions after Cabinet Minister Simon Crean called for a spill of all party positions earlier today.

"For the information of the house, I have determined that there will be a ballot for the leadership and deputy leadership of the labor party at 4.30 today. In the meantime, take your best shot," the Prime Minister said.

During question time, opposition leader Tony Abbott responded with a call to move a vote of no confidence in the Prime Minister that was defeated by one vote.

"This is a government in deadlock, this is a government in crisis," Mr Abbott said.

Mr Crean had told reporters he did not expect Ms Gillard to agree to the spill.

In a press conference, Mr Crean said Kevin Rudd would have "no option" but to run. "I am urging Mr Rudd to put his name forward to break the deadlock."

"If Julia Gillard won a ballot, I would resign," Simon Crean added.

Mr Crean said he would "supporting Rudd in any ballot."

"The position we find ourselves in is not just about the polls," he said.

"[Simon Crean] is urging his collegues to basically force the Prime Minister's hand and he said this needs to be resolved expeditiously, decisively and conclusively and to that end, he says Mr Rudd must now put his name forward, there must be no games. Kevin Rudd must declare he will run and accept the leadership," Fran Kelly said.

Mr Crean made it clear that he hadn't spoken to Kevin Rudd in the last 48 hours, but that he has had discussions in recent weeks.

"Crean admitted he wouldn't be doing this if there wasn't a mood for change," Fran Kelly said.

"There are many in the caucus who haven't wanted to take this step, becasue they think it makes the labor party look stupid- changing the leaders again."

While Simon Crean was firmly of that view, he has now clearly decided to take action.

"He is of the opinion that policy is being made on the run with an eye to a quick headline rather than good governing and that is becasue of the instability," Fran Kelly told 666 listeners.

Simon Crean had put himself forward as deputy leader, but has been sacked from the Gillard goverment frontbench.